- 1
- Nationals of one of the States shall not be subjected in the other State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the States.
- 2
- The taxation on a permanent establishment which an enterprise of one of the States has in the other State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging one of the States to grant to residents of the other State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
- 3
- Except where the provisions of paragraph 1 of Article 9, paragraph 5 of Article 11, or paragraph 5 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of one of the States to a resident of the other State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
- 4
- Enterprises of one of the States, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
- 5
- Contributions borne by an individual who renders dependent personal services in one of the States to a pension scheme established in and recognised for tax purposes in the other State shall, during a period not exceeding in the aggregate 60 months, be deducted, in the first-mentioned State in determining the individual's taxable income, and treated in that State, in the same way and subject to the same conditions and limitations as contributions made to a pension scheme that is recognised for tax purposes in that first-mentioned State, provided that:
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- a)the individual was not a resident of that State, and was contributing to the pension scheme, immediately before he began to exercise employment in that State; and
- b)the individual is either still employed by the same employer as immediately before he began to exercise employment in that State, or by an employer which is an associated enterprise of the aforementioned employer, and
- c)the pension scheme is accepted by the competent authority of that State as generally corresponding to a pension scheme recognised as such for tax purposes by that State.Payments to the pension scheme by the enterprise paying his remuneration shall not be deemed to be taxable income of the individual.
- 6
- For the purposes of paragraph 5:
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- a)the term “a pension scheme" means a compulsory arrangement in which the individual participates in order to secure retirement benefits payable in respect of the dependent personal services referred to in paragraph 5; and
- b)a pension scheme is recognised for tax purposes in a State if the contributions to the scheme would qualify for tax relief in that State.
- The competent authorities may consult each other in case a pension scheme is not a compulsory arrangement with a view to decide whether it is justified to apply the provisions of this paragraph and paragraph 5 in such case.
- 7
- The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.
